Profit Projection Example
So how much profit can you make in the web hosting industry? We have put together the following example to demonstrate to you what you can achieve.
The example below assumes that:
- You host one extra site each day (an increase of 30 accounts per month)
- The average sale is for a Business Power account
- You match our prices
Some resellers are able to achieve much better results than this. We feel that if you match our prices and market your service effectively then the above assumptions are very achievable. You are of course welcome to charge higher prices. However the web hosting industry is very price sensitive so you will probably find that your overall profit is improved by matching our prices rather than exceeding them.
| Profit Example Over 12 Months: Assumes 30 New Business Power Accounts Each Month | |||||||
| Month | Your Revenue | You Pay Us | Your Monthly Profit | ||||
|---|---|---|---|---|---|---|---|
| Setup Fees ($AU) |
Monthly Fees ($AU) |
Setup Fees ($AU) |
Monthly Fees ($AU) |
Setup Fees ($AU) |
Monthly Fees ($AU) |
Total Monthly Profit ($AU) | |
| 1st | 988.50 | 757.50 | 494.25 | 378.75 | 494.25 | 378.75 | 873.00 |
| 2nd | 988.50 | 1515.00 | 494.25 | 757.50 | 494.25 | 757.50 | 1251.75 |
| 3rd | 988.50 | 2272.50 | 494.25 | 1136.25 | 494.25 | 1136.25 | 1630.50 |
| 4th | 988.50 | 3030.00 | 494.25 | 1515.00 | 494.25 | 1515.00 | 2009.25 |
| 5th | 988.50 | 3787.50 | 494.25 | 1893.75 | 494.25 | 1893.75 | 2388.00 |
| 6th | 988.50 | 4545.00 | 494.25 | 2272.50 | 494.25 | 2272.50 | 2766.75 |
| 7th | 988.50 | 5302.50 | 494.25 | 2651.25 | 494.25 | 2651.25 | 3145.50 |
| 8th | 988.50 | 6060.00 | 494.25 | 3030.00 | 494.25 | 3030.00 | 3524.25 |
| 9th | 988.50 | 6817.50 | 494.25 | 3408.75 | 494.25 | 3408.75 | 3903.00 |
| 10th | 988.50 | 7575.00 | 494.25 | 3787.50 | 494.25 | 3787.50 | 4281.75 |
| 11th | 988.50 | 8332.50 | 494.25 | 4166.25 | 494.25 | 4166.25 | 4660.50 |
| 12th | 988.50 | 9090.00 | 494.25 | 4545.00 | 494.25 | 4545.00 | 5039.25 |
As a KangaWeb reseller you can enjoy the benefits of a cumulative income. That is, as your customer base increases over time, so too will your revenue and profit.
The table below shows some basic profit figures over 12 months, using the basis described above. The monthly profit in the twelfth month is AU$5039.25. Naturally even if you did not increase your signup rate over time (and most resellers do) then your monthly profit after two years would be AU$9584.25.
Of course the profit figures below do not take into account other costs such as your own office costs or costs relating to hiring staff. However being a reseller lends itself easily to working from home, and most resellers find that they can comfortably handle the technical support associated with the signup rates described above by themselves, at least for quite some time.
The profit example above is provided in good faith but of course we can make no promises as to whether you would achieve these profit levels. Some resellers will do much better and others will not do as well. Results will also vary depending on the types of products that you offer to your clients - for example Email Pro hosting accounts can lead to much higher per sale profits.
We hope the above analysis has been useful.
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